FIIs Increase Stake in EMS Multibagger Stock in Q2 FY27; Q1 Profit More Than Doubles as Margins Improve

On Thursday, October 22, 2026, shares of Syrma SGS Technology surged around 4 per cent, even as the Indian equity markets traded in the red. The electronic manufacturing services (EMS) stock has rallied over 100 per cent on a year-to-date (YTD) basis, delivering multibagger returns to investors.

FIIs Increase Stake in EMS Multibagger Stock

Interestingly, foreign institutional investors (FIIs) have increased their stake in this EMS multibagger stock from 7.51 per cent in the quarter ended June 2026 to 9.51 per cent in the quarter ended September 2026. 

Syrma SGS Technology Q1FY27 Results

Syrma SGS Technology reported consolidated total revenue of Rs 1,603.7 crore for the quarter ended June 30, 2026, up 67 per cent YoY and 8.6 per cent sequentially, as consumer and automotive programmes drove a sharp expansion in its electronics manufacturing business.

Revenue from operations rose 66.7 per cent from a year earlier to Rs 1,588.6 crore. Consumer electronics remained the company’s largest end-market, contributing Rs 532.8 crore, up 68 per cent YoY and 39 per cent from the preceding quarter. Automotive revenue increased 78 per cent YoY to Rs 394.9 crore, while healthcare revenue doubled to Rs 134.5 crore.

The growth underscores the breadth of Syrma’s PCBA and box-build manufacturing platform, which serves customers across consumer, automotive, healthcare, industrial, IT and Railways. Auto and consumer together accounted for 59 per cent of operating revenue during the quarter, compared with a more industrial-led mix in the previous quarter. Industrial revenue, however, fell 18 per cent sequentially to Rs 376.6 crore, despite increasing 31 per cent from a year earlier.

Profitability improved substantially on a YoY basis. EBITDA increased 72.1 per cent to Rs 176.6 crore and profit after Tax rose 111.7 per cent to Rs 105.7 crore. PAT margin expanded to 6.6 per cent from 5.2 per cent in Q1 FY26. Finance cost declined 10.7 per cent to Rs 13.3 crore, supporting the earnings increase.

However, the sequential trend was less favourable. Operating EBITDA, excluding other income, declined 7.2 per cent from Q4 FY26 to Rs 161.6 crore, while the operating EBITDA margin narrowed by 170 basis points to 10.2 per cent. Gross margin also fell to 24.5 per cent from 25.9 per cent in the preceding quarter, indicating that the higher revenue base did not translate fully into operating leverage.

Management’s inventory approach is also becoming relevant to the earnings quality discussion. Net working-capital days rose to 71 at June 30 from 63 at March 31, as the company maintained higher strategic inventory for critical components and new customer ramps. This supports supply assurance in an electronics supply chain dependent on globally sourced components, but also raises funding needs during rapid growth.

Syrma retained a net cash position of Rs 122.4 crore at June-end, with total cash and equivalents of Rs 808.4 crore against debt of Rs 686 crore. Exports contributed 24 per cent of operating revenue and grew 67 per cent year-on-year, broadly maintaining their share of the business.

DSIJ's Exclusive Analysis

Syrma’s Q1 FY27 performance strengthens the evidence that its electronics manufacturing platform is gaining scale across consumer and automotive programmes. Quarterly operating revenue of Rs 1,588.6 crore was nearly one-third of FY26 consolidated revenue of Rs 4,819.1 crore, highlighting the pace of the current ramp-up, although quarterly run rates should not be treated as an annual forecast.

The growing auto contribution is strategically relevant because the company is also building domestic PCB capability through its Shinhyup Syrma Circuits venture for automotive, appliance, IT and medical applications. Yet the immediate issue is conversion of revenue into sustainable margins. Operating EBITDA margin fell to 10.2 per cent from 11.9 per cent in Q4 FY26, while working-capital days increased to 71 as inventory was built for supply resilience and customer launches.

The result is potentially supportive for investor perception because sales growth, profit growth and a net cash balance provide a credible base for expansion. Still, the stock case remains mixed until the company demonstrates that new programme ramps can restore margins and contain working-capital absorption. The decisive missing indicators are the profitability of the changed product mix and the duration of the elevated inventory requirement.

Disclaimer: The article is for informational purposes only and not investment advice.